Report: GM may buy up to 7 percent of France’s PSA Peugeot Citroen

GM Renaissance Center

According to reports, General Motors is in talks with PSA Peugeot Citroen to purchase a 7 percent stake in the French automaker as a part of an alliance to develop engines and vehicles.

Those familiar with the plans said that the deal would include a standstill agreement by which GM will not take a greater holding in Peugeot Citroen without permission. Peugeot itself may offer additional shares through a rights issue as a part of the transaction, Bloomberg reported.

Reuters, on the other hand, reported that GM is likely to purchase a stage of less than 5 percent.

The partnership between the two companies may include producing engines and vehicles together in France, a source familiar with the plans said. Both companies declined to comment.

– By: Omar Rana

Source: AutoNews